AOS1 The business Idea Flashcards
What is entrepreneurship?
starting and operating a business in response to opportunities, assuming all the risks, in hopes of making profit.
What is Innovation & enterprise
- Adding onto an existing product or creating a new product and improvement to fit.
What is shared vision?
Having a clear understanding and hope on what your business will look like in the future.
What is initiative?
Taking the first step in a series of actions/ processes to get your business running.
What is Financial independence
- Having the money to support a lifestyle without having to be employed or dependent on others.
- motivation for starting a business
What is personal independence
Having the ability to make choices that affect what you do every day.
- motivation for starting a business
4 motivations of starting a business?
- financial independence
- personal independence
- to fulfil a market need
- to make a profit
What is a social need
to improve the world/community with goods and services
What is a market need
To fulfil a market with goods and services that aren’t readily in the market
Benefits of owning a business
- Being your own boss (independence)
- Possibility of making a profit
- Overcoming employment
Limitations of owning a business
- Risk of business failing
- Hardwork and long hours
What is a business manager purpose, characteristics
-manages a business on a day-to-day basis to make a profit.
They must show:
- leadership, organizational skills, communication skills, ability to start and see through long term projects.
What is an entrepreneur, and their characteristics?
- individuals who seize opportunities, assuming all the risks in hopes to make a profit.
- They will demonstrate:
- initiative
- innovation & enterprise
- having a vision
- ability to take measured risks.
Innovation as a source for business opportunity
Ideas for new products, improvements to existing products, will often provide the opportunity for the establishment of a new business
Market opportunities as a source for business opportunity
A business owner may be able to identify opportunities from changes in markets and take advantage
of them as potential business ideas.
Changing customer needs as a source for business opportunity
A person can find an opportunity in business by focusing on meeting changing needs like, changing tastes and fashion, changing incomes and changing population
Research and development as a source for business opportunity
Can allow a person to
develop new products in response to the actions of any competitors, or to improve existing products so that they become superior to those of competitors.
Technology development as a source for business opportunity
Enables innovation, improving efficiency, expanding market reach, and facilitating the delivery of new products and services.
Global markets as a source for business opportunity
Trade between businesses and customers worldwide creates opportunities for entrepreneurs because they can reach more customers and potentially generate more sales.
A business will need to consider whether their idea will work in an overseas country however.
What is a goal and it’s importance
- What a business is expected to achieve overtime
- important because it will give you a clear focus, and motivate you to set targets for the business and work towards it.
What are some financial goals?
- Making/maximizing profit: Profit is what is left after business expenses have been deducted from money earned.
- Expanding the business: Most businesses want to grow, this can be achieved by opening more outlets, employing, staff, new projects/products.
- Increasing sales: Can be done by deciding to sell products at lower price so consumers purchase more, or clever marketing.
What are some social goals?
-Community services: Many business owners will want to financially support educational, cultural, sporting and welfare businesses.
- Social justice: A potential business owner may be concerned for social justice, so they will set policies to ensure the community is treated equally and fairly.
- Ecological sustainability: The social conscience of responsible business owners leads them to adopt policies of sustainability, eg recycling
What is a personal goal
This could be like higher income, and improved financial security. Often the nature and operation of the new business will tend to reflect their personal goals, so it varies.
What is decision making and why is it important.
making choices by identifying and gathering relevant information and assessing alternative resolutions.
- important because it is essential to creating and developing a business idea.
